Shares of Nigerian multinational publicly traded cement manufacturer, Dangote Cement Plc, within a week on the trading floor of the Nigerian Stock Exchange, appreciated by approximately N40 (Ghs 0.62), moving from N204.59 (Ghs 3.15) to N245 (Ghs 3.77).
Gains made by the cement manufacturer for the period between Friday, December 18, 2020 and Thursday, December 24, 2020 stood at N605 billion (Ghs 9.3 billion).
The increase in the share value as uncovered by local media outlet – nairametrics – follows the announcement of share buyback plans by the company.
A total of 17,040,507,405 ordinary shares of the company were bought by investors accounting for the Ghs 9.3 billion gain.
Nairametrics reported on Monday that Dangote Cement Plc announced the commencement of its share buy-back programme, under the approval granted by the Company’s shareholders at the Extraordinary General Meeting of DCP, held on 21 January 2020.
According to the information contained in the announcement issued by the company on Monday morning before trading hours, the approved brokers of the company under the Share Buy-Back Programme would purchase up to 85,202,537 fully paid-up ordinary shares of 50 Kobo each, representing 0.5% of the entire current issued shares of 17,040,507,404 ordinary shares.
Nairametrics in a follow up news report on Monday, indicated that shares of Dangote Cement Plc gained 10% in the first one hour of trading, largely on the back of news of the company’s share buyback plans.
Dangote Cement is the largest cement manufacturer in Nigeria with a total installed production capacity of 48.6 million tonnes per annum.
